RANCHING Business
Unlike a cow-calf operation where cows are viewed
as a long-term investment, the stocker cattle industry runs on a much shorter timeframe. Generally, the lon- gest anyone will own a stocker calf is 8 months, but it can be as short as 2 months, Nichols says. The short-term nature of the stocker business has
its advantages and disadvantages. “The stocker cattle business gives producers a lot of
fl exibility to respond to changing conditions such as drought because it is designed for animals to come and go relatively quickly,” Nichols says. “On the other hand, because it is a short-term ‘bet’ in the marketplace, the business is extremely susceptible to market fl uctuations. “It is a high-risk, high-reward business where noth- ing can be taken for granted,” Nichols says.
Facets of stocker cattle management A stocker operation is multi-faceted, with the pri-
mary components being health, nutrition, stockman- ship and marketing. None can be ignored. Each piece of the program has to work in concert with the others in order to maximize gain and create the opportunity for profi t. The biggest challenge, especially in unpre- dictable fall weather, is keeping stocker cattle healthy, Nichols says. Lighter, younger cattle tend to be more susceptible to health problems than older, heavier cattle.
Health A good health program starts by gathering infor-
mation even before the calves are unloaded for pro- cessing. It is important to know all you can about the cattle, including how far they were trucked and how they were managed, along with their nutritional and vaccination history, Nichols says. Many times, no in- formation will accompany the cattle, but the more the operator knows the better. With this information, operators can work with a
veterinarian to create health protocols specifi c to a load of cattle. At the same time, the veterinarian can help create a treatment protocol for dealing with individual animals that become sick. “Timely treatment of sick animals is crucial,” Nichols
says. “There is a small window of opportunity where calves readily respond to treatment and get better. Morbidity and mortality can wreak havoc on profi ts.”
Nutrition Stocker cattle, regardless of size, need feedstuffs
that are nutritious and palatable. Because smaller cattle eat less by volume, their feed requires higher levels of
68 The Cattleman September 2015
nutrients on a percentage basis. “When it comes to nutrition, operators are asking,
‘What is the most cost-effective way to put weight on the cattle?’” Nichols says. On a per animal basis, the highest rate of gain is generally the cheapest rate of gain, but this should always be analyzed given the available resources and current feed costs. In a graz- ing situation where gain per acre should be considered, this may not be the case. As part of the growth equation, many operators use
implants, which can increase average daily gain by 10 percent, or ionophores, which can increase average daily gain by .1 to .3 pound per day over the duration of the growing period. Both are relatively inexpensive and offer good return on investment.
Stockmanship With its high-risk, high-reward profi le, the stocker
business requires a higher level of management than will a cow-calf enterprise. The stocker business is gen- erally not well suited to being a part-time endeavor. “In the stocker business, decisions have to be made
in a timely manner,” Nichols says. “Because it is a short- term enterprise, there is no time built in to recover from a management mistake.” To be successful, a stocker operator needs to under-
stand the intricacies of the business, the marketplace and the cattle. Seemingly small things make a differ- ence to the bottom line. Shrink is a prime example. By implementing low-stress handling techniques, a good stockman can keep cattle calm on shipping day, which in turn can reduce shrink. If the average shrink on a load of 800-pound cattle is 2 percent, and an operator can reduce that to 1 percent, he has added $8 per head. “In the stocker business, details make you money — or they lose you money,” Nichols says.
Marketing Operators who are considering retaining ownership
or purchasing stocker cattle should develop a marketing plan while they are developing their management plan; otherwise, months of input and labor could be wasted. “Be sure to capture the value you have added to the
cattle, especially lighter cattle that can now be sold as lower-risk if they have been preconditioned. To do this, you have to do more than just deliver them to the local sale barn,” Nichols says. At a minimum, the operator should relay the management information to the auctioneer so buyers know what they are bidding
thecattlemanmagazine.com
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